.gif)
Loading
Belgium-based Umicore plans to invest $1.2 billion to build a battery materials manufacturing plant in the Canadian province of Ontario, which would supply components to one million electric vehicles by 2030.
The Canadian government and Umicore have signed a memorandum of understanding for the plant and will begin negotiations on a formal agreement that will include federal support for the project.
Umicore, a materials technology and recycling company, said separately that it is in talks with several potential customers for production contracts in North America.
Construction of Umicore’s plant, which is expected to be carbon-neutral and create hundreds of permanent jobs, is scheduled to begin in 2023 and operation is expected by the end of 2025.
“Umicore’s intention to establish its new plant in Loyalist Township (in eastern Ontario) is another important step towards making Canada a global leader in electric vehicle manufacturing,” said Canadian Prime Minister Justin Trudeau.
Trudeau’s government has pledged to reduce climate emissions by 40-45% from 2005 levels by 2030 and to achieve net zero by 2050.
The Canadian government considers the automotive sector a key part of its efforts to reduce the national carbon footprint. Earlier this year, Canada pledged to establish a mandate to ensure that all sales of new light vehicles are carbon neutral by 2035.
Auto parts are Canada’s fifth largest export industry and, according to official figures, the automotive sector contributes $16 billion annually to Canada’s gross domestic product.
Ontario is geographically close to US automakers in Michigan and Ohio, and General Motors Co, Ford Motor Co and Stellantis NV have announced plans to produce electric vehicles in factories in the province.
